Xiabuxiabu Catering Management (China) Holdings Co., Ltd. provided consolidated earnings guidance for the year ended December 31, 2019. The group expected that the net profit attributable to owners of the Company for the year ended 31 December 2019 would decrease significantly, as compared with the same for the year ended 31 December 2018. Such decrease was primarily due to the effects of the application of International Financial Reporting Standard 16 "Leases" (effective from 1 January 2019) ("IFRS 16") on the expenditures spent on the leases of the restaurants the Group operates. The application of IFRS 16 will result in a higher total charge to the statement of profit or loss in the first few years of the lease, and such expenses will decrease during the latter part of the lease term, therefore there is no impact on the expenses recognized during the lease term. As the Group currently operates a large restaurant network with over 1,000 restaurants, the effects of the application of IFRS 16 will be significant.